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Accountancy: CUET Mock Test - 7 - CUET MCQ


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30 Questions MCQ Test CUET Mock Test Series - Accountancy: CUET Mock Test - 7

Accountancy: CUET Mock Test - 7 for CUET 2024 is part of CUET Mock Test Series preparation. The Accountancy: CUET Mock Test - 7 questions and answers have been prepared according to the CUET exam syllabus.The Accountancy: CUET Mock Test - 7 MCQs are made for CUET 2024 Exam. Find important definitions, questions, notes, meanings, examples, exercises, MCQs and online tests for Accountancy: CUET Mock Test - 7 below.
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Accountancy: CUET Mock Test - 7 - Question 1

Bill and Monica are partners sharing profits and losses in the ratio of 3:2 having the capital of Rs. 80,000 and Rs. 50,000 respectively. They are entitled to 9% p.a. interest on capital before distributing the profits. During the year firm earned Rs. 7,800 after allowing interest on capital. Profits apportioned among Bill and Monica is: 

Accountancy: CUET Mock Test - 7 - Question 2

What balance does a Partner’s Current Account has?

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Accountancy: CUET Mock Test - 7 - Question 3

Features of a partnership firm are:

Accountancy: CUET Mock Test - 7 - Question 4

Following are the differences between Partnership and Joint Venture except.

Accountancy: CUET Mock Test - 7 - Question 5

 X, Y and Z are partners in a firm. At the time of division of profit for the year there was dispute between the partners. Profits before interest on partner’s capital was Rs. 6,000 and Z demanded minimum profit of Rs. 5,000 as his financial position was not good. However, there was no written agreement. Profit to be distributed to X, Y and Z will be

Accountancy: CUET Mock Test - 7 - Question 6

Ram and Mohan, are partner’s. They draw for private use Rs. 6,000 and Rs. 4,000 respectively. Interest is changeable @ 6 percent per annum on drawings. What is the interest?

Accountancy: CUET Mock Test - 7 - Question 7

Ram is a partner. He made drawings as follows:
July 1     Rs. 200
August 1  Rs. 200
September 1 Rs. 300
November 1  Rs. 50
February 1   Rs. 100

If the rate of interest on drawings is 6% and accounts are closed on March 31 the interest on drawing is:

Accountancy: CUET Mock Test - 7 - Question 8

Subject to contract between the partners, interest on capital is to be provided out of profits only. In case of insufficient profits (i.e. net profit less than the amount of interest on capital), the amount of profit is distributed:

Accountancy: CUET Mock Test - 7 - Question 9

Kapur and Sharma are partners in a partnership firm. Calculate the interest on drawings made by Kapur and Sharma @ 10% p.a. for the year ending 31st December 2013. If, Kapur withdrew Rs. 2,000 per month in the beginning whereas Sharma withdrew same amount at the end of every month.

Accountancy: CUET Mock Test - 7 - Question 10

Aryan and Gauri were partner in a firm sharing profits and losses in the ratio of 2:1. Their capital was R.s. 90,000 and Rs. 60,000 respectively. They were entitled for interest on capital @ 12% p.a. The firm earned a profit of Rs.84,000 after allowing interest on capitals. Profits will be distributed among them will be:

Detailed Solution for Accountancy: CUET Mock Test - 7 - Question 10

The profit for the year is 184000 and that is given after allowing the interest on capital to the partners hence we can directly calculate the profit share for both the partners for Aryan it is 84000×2/3=56000, and for Gauri it is 84000×1/3=28000 hence option B is the correct answer

Accountancy: CUET Mock Test - 7 - Question 11

Seeta and Geeta are partners sharing profits and losses in the ratio 4:1. Meeta was manager who received the salary of Rs. 4,000 p.m. in addition to a commission of 5% on net profits after charging such commission. Profits for the year is Rs. 6,78,000 before charging salary. Find the total remuneration of Meeta

Accountancy: CUET Mock Test - 7 - Question 12

If there is no partnership deed then interest on capital will be charged at ……….p.a.

Accountancy: CUET Mock Test - 7 - Question 13

Interest on Partners capital is:

Accountancy: CUET Mock Test - 7 - Question 14

Partners are suppose to pay interest on drawings only when _______by the _______

Accountancy: CUET Mock Test - 7 - Question 15

Would interest on loan be allowed in the absence of any agreement or when partnership deed is silent?

Accountancy: CUET Mock Test - 7 - Question 16

Seeta and Geeta are partners sharing profits and losses in the ratio 4:1. Meeta was manager who received the salary of Rs. 4,000 p.m. in addition to a commission of 5% on net profits after charging such commission. Profits for the year is Rs. 6,78,000 before charging salary. Find the total remuneration of Meeta

Accountancy: CUET Mock Test - 7 - Question 17

 Guarantee given to a partner ‘A’ by the other partners ‘B & C’ means

Accountancy: CUET Mock Test - 7 - Question 18

What time would be taken into consideration if equal monthly amount is drawn as drawings at the beginning of each month?

Accountancy: CUET Mock Test - 7 - Question 19

How would you close the Partner’s Drawings Account?

Accountancy: CUET Mock Test - 7 - Question 20

In the absence of any agreement, partners are liable to receive interest on their Loans @:

Accountancy: CUET Mock Test - 7 - Question 21

Interest on Drawings is:

Detailed Solution for Accountancy: CUET Mock Test - 7 - Question 21

Interest on drawings is gain for the business. Interest on drawings is an income to the firm, and hence it is credited to the profit and loss appropriation account. On the other hand, interest on drawings is an expense to the partners, and hence it is debited to their capital accounts.

Accountancy: CUET Mock Test - 7 - Question 22

Firm has earned exceptionally high profits from a contract which will not be renewed. In such a cash the profit from this contract will not be included in ______.

Detailed Solution for Accountancy: CUET Mock Test - 7 - Question 22

Because it is not related to the admission or retirement of the partners. At the time of admission or retirement goodwill will be calculated.

Accountancy: CUET Mock Test - 7 - Question 23

A draws Rs. 1000 per month on the last day of every month. If the rate of interest is 5% k.p.a. then the total interest chargeable from him to accounting year ending on 31-12-1985 will be

Detailed Solution for Accountancy: CUET Mock Test - 7 - Question 23

There is a formula for calculating interest on drawings at the end of every month.

= amount * 12 * rate * (11/24)
= 1000 * 12 * (5/100) * (11/24)
= Rs. 275

Accountancy: CUET Mock Test - 7 - Question 24

As per Section 37 of the Indian Partnership Act, 1932, the executors would be entitled at their choice to the interest calculated from the date of death till the date of payment on the final amount due to the deceased partner at ______% p.a.:

Detailed Solution for Accountancy: CUET Mock Test - 7 - Question 24

As per section 37 of the Indian Partnership Act 1932, the executors would be entitled at their choice to the interest calculated from the date of death till the date of payment on the final amount due to the deceased partner at 6% p.a. The loan of the deceased partner is treated as a third party loan. 

Accountancy: CUET Mock Test - 7 - Question 25

A partner acts as ______ for a firm. 

Detailed Solution for Accountancy: CUET Mock Test - 7 - Question 25

A Partner is an Agent of the Firm (Section 18).

partnership is a relationship between partners who agree to share the profits of the business.

The business can be carried on by all of them or any of them acting for all. This definition suggests that a partner can be an agent of the others.

Accountancy: CUET Mock Test - 7 - Question 26

If there is no partnership deed then interest on capital will be charged at ______________p.a.

Detailed Solution for Accountancy: CUET Mock Test - 7 - Question 26

According to partnership act 1932, No interest on capital will be allowed in the absence of partnership deed.

Accountancy: CUET Mock Test - 7 - Question 27

A and B are partners A’s capital is Rs. 10,000 and B’s Capital is Rs. 6,000. Interest is payable @ 6% p.a. B is entitled to a salary of Rs. 300 per month. Profit to the year before interest and salary to B is R.s 8,000. Profits between A and B will be divided as:

Detailed Solution for Accountancy: CUET Mock Test - 7 - Question 27

Profit after interest and remuneration :
= Profit before interest and remuneration - Interest - remuneration

= Rs 8,000 - (600 + 360) - (3,600)
= Rs 3,440.

Distributing profit is equal ratio among partners

= Rs 3,440 / 2
= Rs 1,720 to each partner.

Accountancy: CUET Mock Test - 7 - Question 28

A and B are partners having capital of Rs. 50,000 and Rs. 60,000 respectively. Interest on capital is given @ 5% p.a. Profits for the year before appropriation is Rs. 4,600 provide interest on capital out of profits. Increase allocated to partners is :

Detailed Solution for Accountancy: CUET Mock Test - 7 - Question 28

Interest on capital = 2500 And 3000
but profit = 4600
so, 50000 / 60000 = 5:6
amount is divided into 5: 6
A= 4600 ÷ 11 × 5 = 2091
B = 4600 ÷ 11 × 6 = 2509

Accountancy: CUET Mock Test - 7 - Question 29

A, B and C had capitals of Rs. 50,000; Rs. 40,000 and Rs. 30,000 respectively for carrying on business in partnership. The firm’s reported profit for the year was Rs. 79,200. As per provisions of the Indian Partnership Act, 1932, find out the share of each partner in the above amount after taking into account that no interest has been provided on an advance by A of Rs. 20,000, in addition to his capital contribution. 

Detailed Solution for Accountancy: CUET Mock Test - 7 - Question 29

Profit after charging interest = Profit before charging interest - Interest on loan

= Rs 79,200 - 1,200
= Rs - 78,000.

Profit distribution among partners

= Rs - 78,000 / 3
= Rs - 26,000.

Profit for B and C = Rs - 26,000

Profit for A = Rs - 26,000 + Rs - 1,200

= Rs - 27,200. 

Note:-. 

1) When there is no mention about the profit sharing ratio among partners its assumed to be equal.

2) If there is no agreement or no provision regarding interest on loan in the agreement then the interest will be charged @ 6% p.a. 

Accountancy: CUET Mock Test - 7 - Question 30

When is Profit & Loss Appropriation Account prepared?

Detailed Solution for Accountancy: CUET Mock Test - 7 - Question 30

Profit and loss appropriation account facilitates sharing of the profits earned by the partnership firm. When there is only one proprietor in proprietorship firm there is no need of preparing p&l appropriation account.

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